tencent does 19%. that is $24 billion.nt has invested in chinese listed companies to the tune of $89 billion. 606 billion yuan. that is a large chunk of their investment in other companies that potentially because of regulatory scrutiny, we do not know if they are being ordered to sell some or all of their stake. it does look like a trend. that is why we have to look at billy billy and all of these stocks either yesterday in the hong kong market or overnight in the adrs. shery: a number of drags on the chinese economy and the chinese consumer. we expected to see that reflected in earnings? >> the economy, dampened of course by the slowing chinese economy and the covid zero issues. all of that weighing on consumer sentiment. again, when you have pressure on e-commerce said you have pressure on the gaming site of the business, the biggest money turner for tencent, that is going to spell a pretty bad set of results. keep in mind, there was a moratorium put on new game titles in july of last year. regulators have started to li

meituan and tencent were up overnight. the other companies we talked about that are owned partly by tencent, kuaishou is listed here. they all fell because there is still regulatory pressure and there could still be pressure on tencent to hive off the shares. haidi: our chief north asian correspondent with the latest. let's get you to vonnie quinn. vonnie: opec's new head says oil markets face high risk of a supply squeeze this year. the secretary told bloomberg fears of slowing consumption in china have been exaggerated. he said opec members and other oil producers are running out of extra supplies. he was appointed as opec's top diplomat. >> i think we are running on thin ice if i may use that term because capacity is becoming scarce. this is an issue. it is like an insurance policy. we do not want the oil markets to run on without the insurance policy. vonnie: goldman sachs has downgraded its forecast of china's for your gdp. down point -- down from 3.3% following weaker than expected july data. goldman cited rising cov

will tencent go ahead with the sale?e speculation has been mounting for quite some time, we heard about the possible off of a stake in jd.com and the limited, i sent a result earlier. -- i will get to the result earlier. tencent well or can sell much of its stake, a 19% stake in the chinese food delivery giant, surprisingly some of these other chinese or tencent back companies sank and that continued in the adrs overnight. meituan is down 40%. it got caught up in the sinking tide of tencent back companies. tencent is the biggest single investor. it also posted a larger loss than expected and withdrew its 2022 e-commerce forecast. it has been dealt with a series of blows including its ban of one of its most popular mobile games in india. the potential brought out for the companies and the stoking of fear that these other investee's will be suffering if tencent is being forced, we do not know the regulatory body in china and whether they are forcing that, again, i will give you the statistic of all we get to a preview of t

there is already some contracts in place with tencent.ay be divesting, if this is true, tencent is considering or possibly going to unload as much of -- morgan stanley says it, is 70% stake bloomberg data saying it is a 19% stake. reuters reporting that they are looking at divesting that either all or some of that. that has sent shivers to the other companies that tencent backed during the heyday of the golden age of china. we are talking bilibili. we saw some weakness in the u.s. adrs. also, bilibili and kuaishou seeing weakness. david: that is the next question. do we see tencent, they proceeded with divesting part or all of the stake, to they look at the others too? can we read through what is happening now and applied elsewhere? >> we have already seen tencent talk about jd, divesting shares in that. also sea, which is the e-commerce player in southeast asia, based in singapore. separately to this, the company had a terrible set of results, but they are -- tencent is the biggest a shareholder in sea. you connect the dots. if this is a

tencent and alibaba could be the first targets. have already seen they have run into scrutiny with the government. it would not be surprising if tencent goes in the same direction. emily: how does the chinese government's recent crackdown on tech over the last several years play into this? crystal: we have seen that play out in many ways. the db ideal is a good example. the government told them a foreign listing is not the best option for you. it could be telling big tech companies to sell stakes in other companies, or retain controls in china, onshore, instead of letting them raise capital elsewhere. we have been seeing a lot less foreign listing. there has not been really any chinese listings in the u.s. we have seen how multiple chinese companies that have u.s.-listed vehicles have announced delisting plans. in many ways, the chinese capital market is becoming more closed off. as a country, they are really protecting their technology a lot more. emily: obviously, there has been a lot of volatility in u.s. markets. are we seeing

there is depression from beijing and tencent and alibaba. all of them to undermined their spaghetti will of investments because of competitive concern on the antimonopoly crackdown. james mitchell just flatly denied it, saying that report by reuters is not accurate. those other companies that we talk so much about yesterday, they did fall again. where there is smoke, there may be fire. >> we have more on the earnings from here. they are reporting therefore your earnings. that is coming from -- through a number of executive changes there. they are seeing a for your distribution of 53. that is one of the indicators we have been looking at given that they have seen that recovery in post-pandemic traffic. they also have a number of inflation legs. that is expected to build white well for them given the current inflationary environment for the full year of $.26 there. we do have an exclusive interview, discussing those results. 12:30 p.m. and sydney. let's get you over to vonnie quinn with the first word headlines. >> opec's new head says the mar

sofia: tencent has a broad portfolio of companies.ernet space, and investing in these startups. that has been a problem for chinese regulators, where you have a duopoly controlled by two companies. what we know is that tencent is, according to this report, looking to divest holdings. tencent is big, a portfolio of more than $50 billion u.s. that will weigh on the market because traders tend to look at what a potential target could be, they look at which stock has performed well recently, which would make sense to exit for tencent and when you start looking at clearinghouse data for any hong kong listed shares, you see if any shares show up in there. and you saw what happened when speculations surrounds those kinds of stock, byd and warren buffett selling their stake as well. it is already on the market. >> sofia costa e court appeared -- sofia horta e costa. that is it, stand by for "bloomberg markets: china open," this is bloomberg. ♪ hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel

the tencent second-quarter earnings, juliette saly was just talking about that. also have u.s. retail sales followed by business inventories. seven.pm u.k. time, investors will get the minutes from the fed's july meeting. but first, coming up on the program, from apocalyptic, will discuss changing investor sentiment. plus president biden has signed a sweeping tax climate plan into law. this is bloomberg. dani: welcome back to bloomberg daybreak europe. amid speculation that inflation has peaked, according to the bank of america's monthly fund manager survey, strategists are now looking at the basic rate for rising earnings. that survey showing that investors are still very bearish but perhaps not as extreme as they had been in the month prior . have we seen a turning point in this market? >> i would not say it's a turning point. what was really happening is we've seen the bear market transpire but we've seen better than expected earnings season and an easing of financial pressure and then every central bank is fighting inflation starting to peak. we could get the

also ahead, tencent jumping despite the first-ever quarterly revenue decline. we speak with a top australian executive. yvonne: it could have been worse on the tencent earnings. zero growth. it can only get better. that is your support level. risk is all in. we are down .4%. we have hit the 100 day moving average. we are tracking energy prices. this is another second order effect and some industries are feeling the pinch of high energy or no energy. bond markets are doing that. that is on the back of fed minutes. yvonne: i can't figure out what it signals. they talked about they are committed to this. inflation is still uncomfortably high. are we going to get the smaller hikes ahead? the market seems to think so. they are pricing in 75 basis points in september. david: speaking of central banks, the rate decision, potentially leaving rates unchanged. were talking about the lending rate. 15.5%. the standing deposit rate, also unchanged, 14.5%. we have another great decision later. ozzie job numbers out. -- australian job numbers out. wage price index. the latest

when you look at tencent for example and the overlap there is in payments, talk to us about the otherinesses of alibaba outside the main core business. is there any specific theme you are tracking? >> sure. there are many businesses. there is the food delivery business that alibaba has in china. the advertising, the marketing dollars that come in the form of their customer management revenues, that will actually happen in direct relation to how business sentiment and how merchants are willing to put in advertising. that will again happen on the advertising dollars for many of those tech companies. david: all right, there we go. catherine lin. the broader readthrough is across the different parts of the chinese platform in this. out of singapore, breaking news coming through. you are looking at green bonds. here we go. singapore will be offering 1.9 billion to 2.4 billion sing, it is a green bond. it is in about 11 days. august 15 is when that comes out. that is the breaking news right now. not a lot of detail in terms of what the pricing will be like and i would imagine there will be

. >>> okay coming up on the other side of the break, chinese tech giant tencent.ntinuing to pile into shares of bed bath and beyond and elon musk joking about acquiring manchester united. follow squawk pod on your favorite podcast app and listen anytime. stay tuned careful now. - thanks. -you got it. and thanks to voya, i'm confident about my future. -oh dad, the twins are now... -vegan. i know. i got 'em some of those plant burgers. -nice. -yeah. voya provides guidance for the right investments, and helps me be prepared for unexpected events. they make me feel like i've got it all under control. [crowd cheers] because i do. okay, that was awesome. voya. be confident to and through retirement. . >>> welcome back to "squawk box," everybody. watching the futures this morning, and after a fifth day in a row of gains for the dow. in fact, that's the first time that's happened since may, you are seeing a little bit of a pull back this morning of the nasdaq down by 130 the s&p off by 36, but andrew, we should probably point out that the futures haven't necessarily been

. >> they said they're going to center, holding out until they get a tencent pay raise. -- a .01's --pay raise. even if you got 10%, that would look bigger by the time we get to 2023. the plan to renegotiate in the new year. that is forecasted a bit aggressive, and assumes policymakers -- with the report by my column today reporting they would at least two emergency spending package. to help people with their energy bills if and when she took office in september. tom: thank you very much. just to remind you so that manufacturing, there better than forecast, 49 point eight and august compared to 9.3 in july. coming down .3% -- the concern for your economies continue. maybe the cmi data will address the concerns. your does your current trading below. eight. and what is happening versus the dollar. also sterling. john hardy, had a public strategy spoke to a similar. >> europe hasn't performed as much as it should, i think the fx -- the situation is a complete rethink. it is strange for all of us to see the euro it started off so it should be much faster. francine: we're joined by john ha

let's look at the likes of tencent, they have sales declining again. it will be comparable.e have some of the major gains they do have. this is uproar -- a poor performance, really. quick the bottom of the barrel there is vip electronic. there is earnings story. those are all dropping ahead of earnings as well. we are watching higher smartphone earnings. but certainly, it is a fed story as well. tech is seeing a bit of pain here. the dollar seems to be contributing -- continuing on this trend higher. the japanese yen, they will reach those july lows for yen. >> we will be discussing this with o yvonne: 11:29 in tokyo this morning, heading to the lunch break in japan. starting to regain ground from losses yesterday. looking at what is going on in hong kong, we are dealing with more pain. the dollar reasserting itself. goldman had a note, increasing pain means dollar gain. rishaad: seeing the biggest declines in this part of the world. looking at the currency side of things -- the king's dollar, looks like nothing can stop it. again below 117 euro. two day lows further cny. th

your real estate, travel and health care down between seven tencent 3/10.sh commentary expected from fed officials as well as contending with global slowdown fears. >> i think jay powell said things that, to be blunt, were analytically indefensible. he claimed twice in his press conference that the fed was now at the neutral interest rate calling it 2.5. >> we are going to do everything we can to avoid a recession but we are committed to bringing inflation down and we will do what we need to do and we are a long way away from achieving an economy that is back at 2% inflation and that is where we need to get to. francine: yell kashkari there -- neel kashkari and larry summers. i cannot get enough of larry summers beating up on everybody. who is right in this? shaan: there are a number of features to consider. we had talk about this inflation report, what is most important to consider is what is happening with the fed and what they are doing to pair back inflation. at vanguard, we believe we have passed the peak of the rate tightening cycle. 75 basis points i

china's tencent music entertainment group beat market estimates for quarterly revenue off the back ofing platform reported revenue ofjust over a billion dollars for the quarter ending june 30. that is better than most were expecting. heathrow is to extend a cap on the number of passengers flying from the airport until the end of october due to staff shortages. it means the limit will now be in place until after the uk school half—term holidays. after consulting with airlines, a daily limit of 100,000 departing passengers will now apply until 29 october, the airport says. stay with us on bbc news. still to come: india pushes to become a manufacturing powerhouse, but what about workers' safety? we have a special report from delhi. washington, the world's most political city, is today assessing the political health of the world's most powerful man. indeed i did have a relationship with ms lewinsky that was not appropriate. in fact, it was wrong. in south africa, 97 people have been killed today, i in one of the worst days of violence _ between rival black groups. over the last 10 - days,

that is the reason why we saw it in tencent and alibaba. >> stick with us.e do want to get to our greater china executive editor for his take on what we heard from nancy pelosi in taiwan. those initial remarks and what the outcome is likely to be from the beijing side. >> the thing that speaker pelosi has said that sticks out most at this point is that the u.s. will not abandon taiwan. i think that sort of underlines the importance of her trip. there has been increased concern in the u.s., especially that china might take some steps into encouraging -- into taiwanese territory in terms of needing to strengthen to make this visit. >> give us a sense of the mood there. there is a sense of disappointment that so far, the measures that beijing has come up with are not going far enough to satisfy some people in some quarters. >> prior to ms. pelosi's visit, china did a lot to try and i would say discourage the visit from happening. that included a lot of commentary on chinese social media from people like the former editor of the global times. saying things that

we look at the move in the tencent tech index.re was clearly a short squeeze there, but investors are hopeful that this is finally it. we have had so many developments in the past few months, so many reports that we were talking about before, but every time there seems to be a concession from the chinese side, the u.s. regulators pushback. what we are looking out for is what will the ftc say? we know that they have been pushing a hard line on this, so is this concession from china something that they are ready to accept? everyone i am talking to in hong kong is waiting with bated breath for some sign from the u.s. that they will accept it. tom: the board is back in the court of the u.s. regulator and how they will respond. what's to investor analysts say probably -- what do investor analysts say? >> today, the hang seng tech index is not particularly excited. there seems to be a little bit of caution and a lot of skepticism in the market. you see the position that people are not ready to go along with this market and there is so m

tencent up 2%, so is jd.com. certainly a good day for risk assets. fed story is interesting on why we are not seeing negative reaction from tech, given we are have picked up substantially in the last few hours. take a look at what it comes to live pictures out of taiwan. we are minutes millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. hi, i'm denise. i've lost over 22 pounds with golo in six months and i've kept it off for over a year. i was skeptical about golo in the beginning because i've tried so many different types of diet products before. i've tried detox, i've tried teas, i've tried all different types of pills, so i was skeptical a

to unionize the stocks down in premarket, really in line with nasdaq finally tencent reporting its firstver drop in quarterly revenue. the gaming platform was hurt, limiting playing time and covid lockdowns and that all hurt the stock. but it's essentially flat in hong kong today. >>> now to the latest developments over simmering tensions around taiwan china's ambassador to the u.s. warning washington that beijing will be putting on arms sales. the chinese officials call on the country's richest est prov to offer economic data showing slowdown in consumption and output in july for more let's bring in the managing director and senior policy analyst as long view global, also a cnbc contributor. a very good morning to you good to see you. >>> the first question t gdp number, which disappointed many, was it that bad? we'd be killing for it in the uk at the moment, i'm sure in the u.s. too. >> good morning, wilf. i think it's important to put it into context china really needs about 5%, 5.5% growth to do all the things it needs to do to keep its economy running and its people employed, someth

earlier this month's tencent denied reports it was planning to sell all of its may schwan stake worth $24 billion. alibaba is among the first group of company selected by u.s. regulators for audit inspection after last week u.s. inspectors were granted access to the paperwork of chinese companies. baidu, young china, and jd.com have been selected. >> a look ahead at australia and new zealand. and canberra today executives, union officials, and experts will try to form a consensus on tackling high inflation, falling wages, and labor shortages. the australian is reporting the origin energy closure of its plant as well as growing threats of blackouts. next, federal prosecutors will likely wait until after the november election to announce any charges against former u.s. president donald trump. we will have more on that next. this is bloomberg. pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mo

shares adding to declines we saw at the end of last week, tencent is also under pressure.ech index has switched into positive territory. when it comes to broader chip stocks, they are mostly lower. the u.s. is tightening china access to chipmaking gear, the asia-pacific semiconductor index has fallen today by as much as 1%. we are seeing the u.s. expand according to lam research told analysts there is quite a bit of weakness coming through in china chip players. rishaad: overall markets, quick check on what is going on. mixed. the hang seng is down, others are showing some positivity including the csi 300 which has flipped around and is positive. as far as other asset classes, at the moment, the dollar is a tad weaker but recovery. the taiwan dollar is below the 30 level for the first time since 2020. up next, looking at the earnings rishaad: glorious day for shanghai with markets going on a bright. tokyo returning. today's pmi read, they are taking it in stride. nursing losses, now they are nursing positivity. pmi data adding to china stock woes, but that has been shrug o

tencent, corporate tech companies are already expanding into southeast asia and participating in investmentthree or four years ago. the chinese money has been really relevant in that part of the world. now there is this concern from u.s. institutional investors. i think there is a concern around china. there is no question that there is something about only committing money to the most safe plans. i would say that india has been a big benefactor of that trend. it is deftly moving toward india as one large economy with the young demographic over a billion population. southeast asia has also been benefiting that as well. a lot of chinese money going in. i was in singapore in june and the number of high network individuals, chinese individuals and chinese funds expanding into southeast asia was really dramatic. sequoia raised $850 billion in a southeast asian fund. they drove a record 2.6 billion for the first half of this year. that was about expanding into southeast asia. >> thank you for your insight. we have plenty more ahead, this is bloomberg. ♪ >> >> here are your movies here today. we

it concluded that future work is required to understand that this behavior is unique to tencent or if it is common for internationally operating chinese social media companies to use communications among their non chinese users to implement chinese political censorship was related to the point you just made. so i assume you agree that this is an area that bears further examination talking more about the role that chinese software, particularly apps like tiktok could play and contributing to ccp surveillance or influence globally as you said, mr -- contributing to ccp. >> as you said, mr gallagher, not really my area, but in general, i agree this topic deserves much scrutiny. >> could you talk a bit about actually maybe a question for mr huntley talk a bit about how the threat analysis group approaches chinese software, apps like tiktok or wechat for example, do you conduct any sort of vulnerability analysis surrounding these type of apps? does your feedback play a role in terms of which apps might be available for download? for example, in the android store. >> thanks the question con

we still have tencent, baidu and others to come. >> alibaba itself is still one of the biggest tech companiespartly reflect the advertisement part of the merger. probably can reflect the macro recovery of china in june quarter. shery: where are we seeing more of a boost for tech companies that actually rallied during the tender -- during the pandemic because people were still consuming while they were indoors because of all of this? the tech sector got a huge boost. why is it different this time around? >> i think a few look at in 2020, we see a lot of tech stock rally when people work from home. this year is a little bit different. the lockdown is longer versus 2020. on the other hand, we are seeing not only the lockdown side but probably a slowdown in china. which reflects on the revenue of the tech companies. the online e-commerce. we also saw the jd retail ceo saying the situation as a little bit different from 2020. it is not exactly the same story for what we are seeing for the tech company in 2020. shery: asia research analyst on what to expect for the tech earnings for china. let's tu

there are a number of reports this morning that tencent is going to divest part of their food deliveryng china regulators trying to crack down on these sort of empire-like companies trying to consolidate data of the chinese people and to try to disperse that data, decentralize it looks like it may be working, that crackdown, in the terms of the impact it's forcing companies to have. >> also bed bath & beyond, there was a filing out yesterday this was not part of the 13f cohort it detailed some options tuft that ryan cohen of rc ventures, the gamestop chairman, had made. he purchased american options, all expired january 2023 exercise prices of 60, 75, and 85 earlier this morning when i checked, that stock as trading around $15 a share you can see now closer to about $21 per share. >> 60, 70 and 85 >> 60, 75 and 85. >> expiration date >> january 20th. >> january 20th? >> so very out of the money. >> extremely. >> very, very out of money i would imagine dirt cheap i thought you were going say because he tweeted an ice cream cone or something like that. i guess there is still time in the

chinese social media and gaming giant tencent pottsed it's first-ever quarterly revenue decline.lowdown of the chinese economy. our eunice yoon is live in beijing. >> reporter: they missed on both revenues as well as profits, exactly because of what you said that is, that their advertising numbers just weren't good. that's because of the lockdowns as well as the weak economy scared a lot of businesses by creating all of that uncertainty. the other big revenue is the gaming industry. that revenue, it just really wasn't there the company said because of the beijing holding back on some of their title approvals, and because of beijing limits the playing time more broadly for minors here, that affected their business overseas, the company said that it faced what it described as a post-pandemic digestion period in other words, people weren't really playing as many games, because they were going out. on the earnings call tonight, founder tony maz said the company will continue to focus on their cost/control strategy, this after the company said they cut their workforce by about 5% in t

we are watching what is happening with tencent this week as well.top tv makers in china. they enter into this crucial earnings season. keep an eye on these airlines. the provincial authority of hainan announcing domestic flights for passengers out of hainan should resume today. don't forget the gas producers, japan and russia supplying for winter worsening, driving prices higher. haidi: energy continuing to be a major theme this week. our guest joins us to tell us how they review japan equities as an opportunity to add exposure. as shery just mentioned, a big earnings season. but warren capital is pessimistic about the sector. we will be hearing y. that is it from daybreak asia. markets coverage continues.we are looking at the start of trading in hong kong and shanghai. the china open is next. this is bloomberg. ♪ this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many mor

investors don't know that when they're buying alibaba or tencent, they don't own the company.itutions that are pushing you esg are talking about china's bright future without at all putting a fixer finge on the china risk. >> are you trying to just say, look, they should be calling out china and they're not, and that's what you're upset about in orabout? or you' are upset -- there is a double standard. there are people who have they have lots of different views but feel like they can't say something aloud in china some people say that they're actually doing the right thing in terms of thinking about their shareholders and capitalism and all that i'm trying to figure which side you're really on >> i think investors should be able to see through the hypocrisy to make the decision for themselves to say there's a conflict of interest when you use shareholder client capital in the u.s. to tell chevron or exxon to drop oil production, but on the other side of the world, for companies invested in china, you saw a project that chevron dropped in the sichuan province they don't say a p